"Because the
Government failed to present sufficient evidence that the
defendants willfully engaged in substantive insider trading or a
conspiracy to commit insider trading in violation of the federal
securities laws, we reverse Newman and Chiasson's convictions and
remand with instructions to dismiss the indictment as it pertains
to them with prejudice," the opinion said.

Newman, an ex-Diamondback Capital portfolio manager,
and Chiasson, the cofounder of now-defunct hedge
fund Level Global, were codefendants accused of
trading on inside information in Dell and
Nvidia stocks. The two hedge-funders were
convicted in May 2013.

Today's court
decision concluded that the "jury instructions were erroneous and
that there was insufficient evidence to support the convictions"
of Newman and Chiasson.

"Today’s decision is a resounding victory for the rule of
law and for Anthony Chiasson personally," Chiasson's
attorney Gregory Morvillo said in a statement.
"Mr. Chiasson has always conducted himself according to
the highest ethical and professional standards in service to many
of the world’s leading hedge fund investors who were his clients
for years. He is deeply gratified that the decision issued
today unequivocally re-establishes his innocence under the law –
consistent with what Anthony has steadfastly maintained for the
duration of this ordeal."

On the other hand, U.S. Attorney Preet Bharara, who has
been cracking down on insider trading since 2009, probably isn't
going to like this.